Wednesday, Oct. 25, 2000 | 9:33 a.m.
The tribe announced Tuesday it will spend $1.065 billion, or $265 million more than planned, to increase the size and scope of its Sunburst luxury hotel/casino project and to make other property enhancements.
The new plan calls for a new 3,000-space parking garage, another 15,000-square-feet of gaming space on top of the additional 100,000 square feet already planned; and conversion of the existing bingo hall to a smoke-free slot machine casino.
With the additional gaming space, the Mohegan Sun Casino will increase its number of slot machines from 3,027 to 6,227 when Sunburst opens in October 2001. That will be about eight fewer machines than what competitor Foxwoods Resort Casino plans to have at that time.
Mohegan Sun will also make design and decorating changes, increase the size of its new spa to 18,000 square feet, and spend $20 million to turn the bingo room into a casino.
The increased costs include $102 million for design and scope changes, $58 million more for labor, $20 million for the smokeless casino, $50 million for the parking garage, and $35 million for utilities.
Combined, the additional amenities and cost increases swell the overall cost of Sunburst from $800 million to almost $1.1 billion.
On Tuesday, the casino, owned by the Mohegan tribe, released its fourth-quarter and year-end operating results. The casino's gross revenues for the fiscal year ending Sept. 30 were $814 million, up 12 percent over last year's gross revenues of $730 million. Mohegan Sun's net slot revenues were $529.9 million.
Because Foxwoods does not use a public offering to raise money, it does not report its operating results. But Analysts said that based on the slot-machine win, which is reportable, Foxwoods' gross revenues last year were probably about $1.3 billion, and their net income about $330 million.
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